The context of multiple crises in recent times, including the COVID-19 pandemic, the war in Ukraine, and the rising number of severe climate-related events, has once again emphasised the pressing need for emerging markets and developing countries (EMDCs) to expand their fiscal capacities. Identifying new tax revenue drivers is now a key concern for many governments and researchers worldwide.
Digital financial services like mobile money services have emerged as a transformative force shaping the financial inclusion landscape in the developing world, allowing people and firms previously excluded from the traditional banking sector to access basic financial services. From its initial focus on domestic person-to person transfers, the mobile money services industry has diversified its product range considerably. The industry now offers a range of mobile solutions for bill payments, merchant payments, person-to-government transfers or international remittances, thereby facilitating the completion of daily transactions for individuals and businesses.
Given this context, this paper aims to explore the potential impact of the rapid expansion of mobile money services on non-resource tax revenues in EMDCs. Summary of ICTD Working Paper 194.
